Big Banks Won't Drown in Liquidity Rule

By

John Carney

Sept. 3, 2014 3:33 p.m. ET

After a long incubation period, a new liquidity standard for large U.S. banks has finally hatched.

The novelty of the so-called liquidity-coverage-ratio rule approved by bank regulators Wednesday means that there inevitably will be unintended costs as banks adjust their holdings to meet the new rule. The worst fears, however, appear to be overstated.

Running to nearly 400 pages, the new rule will require banks to have enough...